Kancha Gachibowli Issue: Sridhar Babu says funds raised through bonds, not loans

Industries Minister D Sridhar Babu said ICICI Bank did not extend any loans, while Rs.8,476 crore was raised through issue of bonds at low interest rates

Hyderabad: Amidst the ongoing row over the mortgaging of Kancha Gachibowli lands, Industries Minister D Sridhar Babu said Rs.8,476 crore was not raised through loans but through issue of bonds at low interest rates of 9.35 percent. The ICICI Bank did not extend any loans but an escrow account was created for performing transactions. Loans and bonds were different, he said at a press conference here on Saturday.

The Minister claimed that the merchant banker was paid a professional fee for facilitating in raising the bonds as per SEBI regulations. But false charges were being levelled against the government stating that the amount was paid to brokers and unknown persons, the Minister said.

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Of the Rs.8,476 crore, Rs.2,146 crore was utilized for the crop loan waiver, Rs.5,463 crore for Rythu Bharosa and Rs.947 crore for extending bonus to fine rice varieties. It was used for farmers and people’s welfare, he claimed, alleging that the BRS was creating hurdles in every initiative.

Meanwhile, responding to BJP MP Dharmapuri Arvind’s comments that the AICC was planning to replace the Chief Minister in the State, Sridhar Babu said Revanth Reddy would continue to be the Chief Minister. Stating that all Ministers were eligible and fit for the post, the Minister said the ultimate decision would be taken by the AICC.

“Chief Minister Revanth Reddy has been delivering corruption-free governance and he will continue to be the Chief Minister,” Sridhar Babu said, also countering the opposition’s criticism over AICC incharge Meenakshi Natarajan conducting a meeting with Ministers in the Secretariat.

“It was not a review meeting. Many people even BRS and BJP leaders come to Secretariat as it belongs to all. Our leadership comes to meet us. It was a general meeting and she discussed different aspects,” Sridhar Babu said, adding that it was not wise to say that party leaders were interfering and taking decisions on administrative issues.